Description: Investment
Consistent with New Zealand's overseas investment regime as set out in the relevant provisions of the Overseas Investment Act 2005, the Fisheries Act 1996, and the Overseas Investment Regulations 2005, the following investment activities require prior approval from the New Zealand Government:
Measures: Overseas Investment Act 2005 Fisheries Act 1996 Overseas Investment Regulations 2005
Description: Investment
Consistent with New Zealand's overseas investment regime as set out in the relevant provisions of the Overseas Investment Act 2005, the Fisheries Act 1996, and the Overseas Investment Regulations 2005, the following investment activities require prior approval from the New Zealand Government:
(a) acquisition or control by non-government sources of 25 per cent or more of any class of shares (5) or voting power (6) in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$200 million;
(b) commencement of business operations or acquisition of an existing business by non- government sources, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$200 million;
(c) acquisition or control by government sources of 25 per cent or more of any class of shares (7) or voting power (8) in a New Zealand entity where either the consideration for the transfer or the value of the assets exceeds NZ$100 million;
(d) commencement of business operations or acquisition of an existing business by government sources, including business assets, in New Zealand, where the total expenditures to be incurred in setting up or acquiring that business or those assets exceed NZ$100 million;
(e) acquisition or control, regardless of dollar value, of certain categories of land that are regarded as sensitive or require specific approval according to New Zealand's overseas investment legislation; and
(f) any transaction, regardless of dollar value, that would result in an overseas investment in fishing quota.
Overseas investors must comply with the criteria set out in the overseas investment regime and any conditions specified by the regulator and the relevant Minister or Ministers.
This entry should be read in conjunction with Entry No II-6.
Entry No. I-8
Sector: All Sectors
Obligations Concerned: Performance Requirements (Investment)
Measures: Income Tax Act 2007, Goods and Services Tax Act 1985 Estate and Gift Duties Act 1968 Stamp and Cheque Duties Act 1971 Gaming Duties Act 1971, Tax Administration Act 1994
Description: Investment
Any existing non-conforming taxation measures.
Annex I. Schedule of the United Kingdom
Introductory Notes
1. "Description" provides a general non-binding description of the measure for which the entry is made.
2. "Obligations Concerned" specifies the obligations referred to in paragraph 1 of Article 9.8 (Non-Conforming Measures - Cross-Border Trade in Services) and paragraph 1 of Article 14.10 (Non-Conforming Measures - Investment) that do not apply to the measures listed in the "Measures" element.
3. In the interpretation of an entry, all elements of the entry shall be considered. An entry shall be interpreted in the light of the relevant obligations against which the entry is taken. The "Measures" element shall prevail over other elements.
4. For the avoidance of doubt, and recalling:
(a) subparagraph 3(b) of Article 9.3 (Scope - Cross-Border Trade in Services) and paragraph 5 of Article 14.10 (Non-Conforming Measures - Investment) relating to the exclusion of government procurement; and
(b) subparagraph 3(d) of Article 9.3 (Scope - Cross-Border Trade in Services) and paragraph 6 of Article 14.10 (Non-Conforming Measures - Investment) relating to the exclusion of subsidies or grants provided by a Party,
in relation to Research and Development ("R&D") services, Chapter 9 (Cross-Border Trade in Services) and Chapter 14 (Investment) shall not interfere with the ability of the United Kingdom to grant exclusive rights or authorisations, for publicly funded R&D services, to nationals of the United Kingdom or enterprises of the United Kingdom having their registered office, central administration, or principal place of business in the United Kingdom.
Entry No. I-1 - Health, Social, and Education Services
Sector: Health, social, and education services
Obligations Concerned: Market Access National Treatment Senior Management and Boards of Directors
Level of Government: Central and Regional
Description: Investment
The United Kingdom, when selling or disposing of its equity interests in, or the assets of, an existing state enterprise or an existing governmental entity providing health, social, or education services (CPC 93, 92), may prohibit or impose limitations on the ownership of such interests or assets, and on the ability of owners of such interests and assets to control any resulting enterprise, by investors of New Zealand or their enterprises. With respect to such a sale or other disposition, the United Kingdom may adopt or maintain any measure relating to the nationality or residency of senior management or members of the boards of directors, as well as any measure limiting the number of suppliers.
For the purposes of this entry:
(a) any measure maintained or adopted after the date of entry into force of this Agreement that, at the time of the sale or other disposition, prohibits or imposes limitations on the ownership of equity interests or assets or imposes nationality or residency requirements, or imposes limitations on the numbers of suppliers as described in this entry, shall be deemed to be an existing measure; and
(b) "state enterprise" means an enterprise owned or controlled through ownership interests by the United Kingdom and includes an enterprise established after the date of entry into force of this Agreement solely for the purposes of selling or disposing of equity interests in, or the assets of, an existing state enterprise or governmental entity.
Measures: As set out in the Description element as indicated above.
Entry No. I-2 - Professional services (legal services)
Sector - Sub-Sector: Professional services - legal services
Industry Classification: Part of CPC 861
Obligations Concerned: Market Access, National Treatment, Local Presence
Level of Government: Central and Regional
Description: Investment and Cross-Border Trade in Services
Residency (commercial presence) may be required by the relevant professional or regulatory body for the provision of some United Kingdom domestic legal services. Non-discriminatory legal form requirements apply.
Residency may be required by the relevant professional or regulatory body for the provision of certain United Kingdom domestic legal services in relation to immigration.
Measures: For England and Wales, the Solicitors Act 1974, the Administration of Justice Act 1985 and the Legal Services Act 2007.
For Scotland, the Solicitors (Scotland) Act 1980 and the Legal Services (Scotland) Act 2010.
For Northern Ireland, the Solicitors (Northern Ireland) Order 1976.
For the United Kingdom, the Immigration and Asylum Act 1999.
In addition, the measures applicable in England and Wales, Scotland, or Northern Ireland include any requirements set by professional and regulatory bodies.
Entry No. I-3- Professional services (intellectual property agents)
Sector - Sub-Sector: Professional services - intellectual property agents
Obligations Concerned: Local Presence, Most-Favoured-Nation Treatment
Level of Government: Central
Description: Cross-Border Trade in Services
Local presence is required for the provision of intellectual property agency services.
Measures: Copyright, Designs and Patents Act 1988.
Entry No. I-4 - Professional services (veterinary services)
Sector - Sub-Sector: Professional services - veterinary services
Industry Classification: CPC 932
Obligations Concerned: Market Access Local Presence
Level of Government: Central
Description Cross-Border Trade in Services
Only members of the Royal College of Veterinary Surgeons ("RCVS") may provide veterinary services in the United Kingdom. RCVS guidelines may require physical presence for the provision of veterinary services.
Measures: Veterinary Surgeons Act 1966.
Entry No. I-5 - Business services
Sector - Sub-Sector: Business services - rental or leasing services without operators and other business services
Industry Classification: Part of CPC 831
Obligations Concerned: Market Access, National Treatment, Local Presence, Most-Favoured-Nation Treatment
Level of Government: Central
Description: Investment and Cross-Border Trade in Services
For rental or leasing of aircraft without crew (dry lease) aircraft used by an air carrier of the United Kingdom are subject to applicable aircraft registration requirements. A dry lease agreement to which a United Kingdom carrier is a party shall be subject to requirements in the national law on aviation safety, such as prior approval and other conditions applicable to the use of third countries' registered aircraft. To be registered, aircraft may be required to be owned either by natural persons meeting specific nationality criteria or by enterprises meeting specific criteria regarding ownership of capital and control (CPC 83104).
With respect to computer reservation system ("CRS") services, where the United Kingdom air carriers are not accorded, by CRS services suppliers operating outside the United Kingdom, equivalent (meaning non- discriminatory) treatment to that provided in the United Kingdom, or where United Kingdom CRS services suppliers are not accorded, by non- United Kingdom air carriers, equivalent treatment to that provided in the United Kingdom, measures may be taken to accord equivalent discriminatory treatment, respectively, to the non-United Kingdom air carriers by the CRS services suppliers operating in the United Kingdom, or to the non-United Kingdom CRS services suppliers by United Kingdom air carriers.
Measures: Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community (Recast) as retained in United Kingdom law by the European Union (Withdrawal) Act 2018 and as amended by the Operation of Air Services (Amendment etc.) (EU Exit) Regulations (S.I. 2018/1392), Regulation (EC) No 80/2009 of the European Parliament and of the Council of 14 January 2009 on a Code of Conduct for computerised reservation systems and repealing Council Regulation (EEC) No 2299/89 as retained in United Kingdom law by the European Union (Withdrawal) Act 2018 and as amended by the Computer Reservation Systems (Amendment) (EU Exit) Regulations 2018 (SJ. 2018/1080).
Entry No. I-6 - Communication services
Sector - Sub-Sector: Communication services - postal and courier services
Industry Classification: Part of CPC 71235, part of 73210, part of 751
Obligations Concerned: Market Access
Level of Government: Central
Description: Investment and Cross-Border Trade in Services
The organisation of the siting of letter boxes on the public highway, the issuing of postage stamps, and the provision of the registered mail service used in the course of judicial or administrative procedures may be restricted. For greater certainty, postal operators may be subject to particular universal service obligations or a financial contribution to a compensation fund.
Measures: Postal Services Act 2011 Postal Services Act 2000
Entry No. I-7 - Transport services and services auxiliary to transport services
Sector - Sub-Sector: Transport services - auxiliary services for water transport, auxiliary services to rail transport, road transport and services auxiliary to road transport, services auxiliary to air transport services
Obligations Concerned: Market Access, Local Presence, Senior Management and Boards of Directors
Level of Government: Central and Regional
Description:
(a) Services auxiliary to air transport services
With respect to Investment - Market Access and Cross- Border Trade in Services - Market Access:
The level of openness of groundhandling services depends on the size of airport. The number of suppliers in each airport may be limited. For big airports, this limit may not be less than two suppliers.
Measures: The Airports (Groundhandling) Regulations 1997 (SI. 1997/2389).
(b) Supporting services for all modes of transport
With respect to Cross-Border Trade in Services - Local Presence:
Customs services, including customs clearance services and services relating to use of temporary storage facilities or customs warehouses, may only be provided by persons established in the United Kingdom. For the avoidance of doubt, this includes United Kingdom residents, persons with a permanent place of business in the United Kingdom or a registered office in the United Kingdom.
Measures: Taxation (Cross-Border Trade) Act 2018. Customs and Excise Management Act 1979.
(c) Auxiliary services for water transport
With respect to Investment - Market Access and Cross-Border Trade in Services - Market Access:
For port services, the managing body of a port or the competent authority, may limit the number of providers of port services for a given port service.
Measures:
Regulation (EU) 2017/352 of 15 February 2017 establishing a framework for the provision of port services and common rules on the financial transparency of ports, Article 6 as retained in United Kingdom law by the European Union (Withdrawal) Act 2018 and as amended by the Pilotage and Port Services (Amendment) (EU Exit) Regulations 2020 (SI. 2020/671).
Port Services Regulations 2019.
(d) Road transport and Services auxiliary to road transport
With respect to Investment - Senior Management and Boards of Directors:
Transport Managers within the Road Haulage sector may be required to be resident in the United Kingdom.
Measures: Goods Vehicles (Licensing of Operators) Act 1995.
Regulation (EC) No 1071/2009 of the European Parliament and of the Council of 21 October 2009 establishing common rules concerning the conditions to be complied with to pursue the occupation of road transport operator and repealing Council Directive 96/26/EC as retained in United Kingdom law by the European Union (Withdrawal) Act 2018 and as amended by the Licensing of Operators and International Road Haulage (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/708).
Entry No. I-8– Energy related activities
Sector - Sub-Sector: Energy related activities - mining and quarrying
Industry Classification: ISIC Rev 3.1 11
Obligations Concerned: Market Access
Level of Government: Central and Regional
Description: Investment and Cross-Border Trade in Services
A licence is necessary to undertake exploration and production activities, both onshore and offshore. But mining and quarrying services may be provided to that licence holder without restriction.
This entry applies to production licences issued with respect to both onshore and offshore activities. To be a Licensee, a company must have a place of business within the United Kingdom. That means either:
(a) a staffed presence in the United Kingdom;
(b) registration of a United Kingdom company at Companies House; or
(c) registration of a United Kingdom branch of a foreign company at Companies House.
To be a party to a licence that covers a producing field, a company must either:
(a) be registered at Companies House as a United Kingdom company; or
(b) carry on its business through a fixed place of business in the United Kingdom as defined in section 148 of the Finance Act 2003 (which normally requires a staffed presence).
This entry does not cover the provision of mining and quarrying services to the licence holder. Those services may be provided without restriction, provided that the holder of the production licence meets the criteria above.
Measures: Petroleum Act 1998.
Annex II. CROSS-BORDER TRADE IN SERVICES AND INVESTMENT. NON-CONFORMING MEASURES
Explanatory Notes
1. The Schedule of a Party to this Annex sets out, pursuant to Article 9.8 (NonConforming Measures – Cross-Border Trade in Services) and Article 14.10 (Non-Conforming Measures – Investment), the specific sectors, sub-sectors, or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 9.5 (National Treatment – Cross-Border Trade in Services) or Article 14.6 (National Treatment – Investment);
(b) Article 9.6 (Most-Favoured-Nation Treatment – Cross-Border Trade in Services) or Article 14.7 (Most-Favoured-Nation Treatment – Investment);
(c) Article 9.4 (Market Access – Cross-Border Trade in Services) or Article 14.5 (Market Access – Investment);
(d) Article 9.7 (Local Presence – Cross-Border Trade in Services);
(e) Article 14.8 (Performance Requirements – Investment); or
(f) Article 14.9 (Senior Management and Boards of Directors – Investment).
2. Each Schedule entry sets out the following elements:
(a) “Sector” refers to the sector for which the entry is made;
(b) “Sub-Sector”, where referenced, refers to the specific sub-sector for which the entry is made;
(c) “Industry Classification”, where referenced, refers to the activity covered by the entry, according to the CPC, ISIC Rev. 3.1, or as expressly otherwise described in that entry:
(i) “ISIC Rev. 3.1” means the International Standard Industrial Classification of All Economic Activities (Statistical Papers, Series M No. 4, ISIC Rev. 3.1, Statistical Office of the United Nations, New York, 2002); and